Value Of A Master Data Governance Program
Master data includes all that highly visible information about:
- Business units
Every person in the organisation relies daily on master data, found
in invoices, statements, packing slips, warehouse inventory lists,
marketing catalogs, supplier listings and customer information.
Many personnel may not recognize this daily information they rely
on as master data. Yet, master data touches every functional group,
including the executive team, legal, finance, human capital, marketing,
transportation and logistics, and facilities.
Everyone within the organization, as well as third-party suppliers,
contractors, etc. are responsible for maintaining the integrity,
accuracy and longevity of master data.
Master data requires a strong governance program to provide strategic
leadership by setting the direction for collecting, maintaining
and protecting master data through a series of policies, processes,
training and audits.
For instance, without an enterprise view of master data, it would
be easy for functional groups to remove certain data elements, with
very costly impact to the organisation as a whole. This is usually
most common with meta data and associated data.
Master data consists of:
- Data elements - viewed or recognized by the
- Metadata - data about the data differentiates
on version of data from another.
Without metadata, data that may appear as duplicate data may be
Secondary or associated data may also be overlooked. This is typically
the child portion of a parent-child data relationship. The child
data often further defines the parent. For example, for an online
order, the customer name, address and account number comprise the
parent data. Child data may include credit card, logon and password
information, items purchased, dollar amount, conversion rate, date
of purchase and credit card posting date.
Poorly designed validation rules addressing the management of secondary
data can be costly. For instance, specifying deletion of all primary
data sets if no secondary data is present or if a customer’s
password has not been accessed in 18 months.
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